Sunday, January 18, 2015

Dallah Real Estate and Tourism Holding Company v The Ministry of Religious Affairs, Government of Pakistan [2010] UKSC 46

The first judgment by the Supreme Court in an arbitration case, Dallah Real Estate and Tourism Holding Company v The Ministry of Religious Affairs, Government of Pakistan [2010] UKSC 46, was handed down on Wednesday 3 November 2010. The Supreme Court upheld the decisions of the Court of Appeal and High Court which refused to recognise and enforce a New York Convention award in favour of Dallah. Those decisions were notable as rare examples of the English court refusing to enforce a New York Convention award.

The facts
In 1996 Dallah signed an agreement with the Awami Hajj Trust (a trust set up by ordinances of the Government of Pakistan) for the provision of housing to pilgrims making the hajj to Mecca. The agreement contaied an arbitration agreement, which referred any disputes to ICC arbitration in Paris, but which did not specify the applicable governing law. The ordinances establishing the Trust lapsed shortly after the agreement was signed, and the Trust ceased to exist as a legal entity. A dispute arose as to the scope of the project, and Dallah brought ICC arbitration proceedings in 1998 against the Government, claiming that the Government was a true party to the underlying agreement. In a first partial award on jurisdiction, the tribunal (which included Lord Mustill) upheld this contention ,and subsequently in 2006 Dallah were awarded USD 20 million.
Dallah then sought to enforce the award in England. The Government objected to enforcement under section 103(2)(b) of the Arbitration Act 1996, on the ground that “the arbitration agreement was not valid […] under the law of the country where the award was made” because the Government was not a party to it.



Source: http://ukscblog.com/case-comment-dallah-real-estate-and-tourism-holding-company-v-the-ministry-of-religious-affairs-government-of-pakistan-2010-uksc-46/

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